Spring Real Estate: These 25 Places Have the Most Overpriced Homes
You might feel like everywhere you look, home prices are skyrocketing. Even in the cities you thought were safe, home prices have been doing a steady uphill climb. The cost of homes has been going up 5.4% on average every year for the past three decades. Recently, though, prices have jumped even more, with the last quarter of 2022 showing an 8.8% increase from the year before.
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Here's the thing: Not every home is worth what it's selling for. In certain cities, homes are consistently listed with eye-popping prices that just don't make sense, even if it's an expensive area. GOBankingRates determined which places in the U.S. are most overpriced by narrowing down where home values and home sales are the most different, based on April data from Zillow. The places that ranked the highest in the study had home values far below what they were selling for.
Read on to find out the most overpriced places to live in the United States.
25. Miami, Oklahoma
2023 average median listing price: $281,250
2023 average home value: $106,849.61
Price difference: $174,400.39
You've probably heard of Miami, Florida, but how about this Miami? With a population of just over 12,000, Miami, Oklahoma, is a much quieter place to live than its Florida counterpart. The small town does offer the historic Coleman Theater, and the Buffalo Run Casino and Resort.
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24. Los Alamos, New Mexico
2023 average median listing price: $654,000
2023 average home value: $477,838.05
Price difference: $176,161.95
Homes are worth almost $200,000 less than they're listed for in Los Alamos. The town is northwest of Santa Fe, and has just over 13,000 people. Fun fact: The current CEO of Starbucks, Kevin R. Johnson, graduated from the town's Los Alamos High School.
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23. Helena, Montana
2023 average median listing price: $601,199.67
2023 average home value: $424,205.55
Price difference: $176,994.12
Helena is the capital city of Montana and is surrounded by some beautiful sights, including the Missouri River, the Elkhorn Mountains and the Big Belt Mountains. With all of that gorgeous geography to take in, homes are worth just over $400K, on average -- but buyers are asking for about $600K.
22. Moultrie, Georgia
2023 average median listing price: $279,378
2023 average home value: $99,252.06
Price difference: $180,125.94
Moultrie is a small town with a population of just over 14,000. The town is home to many historical buildings, including Hotel Colquitt. Homes are worth just under $100,000 in the area.
21. Raymondville, Texas
2023 average median listing price: $243,387.67
2023 average home value: $59,706.46
Price difference: $183,681.21
Homes in Raymondville are only valued around $60,000, according to Zillow, which is far below the nation's average home price of $428,700. Even Raymondville's typical asking price of $243,000 would be a bargain in many states.
20. Cullowhee, North Carolina
2023 average median listing price: $546,833.33
2023 average home value: $356,665.24
Price difference: $190,168.09
For having a population of 7,600, Cullowhee's average listing price is pretty high. The town is home to Western Carolina University, and is in the valley of the Tuckasegee River, giving its residents a nice landmark to see out of their window.
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19. Salinas, California
2023 average median listing price: $968,050
2023 average home value: $776,539.95
Price difference: $191,510.05
Salinas homes list for a quarter of a million, on average, but houses in the town aren't typically worth that much. Instead, they're worth almost $200,000 less than that, even with the proximity to the Bay Area.
18. Milledgeville, Georgia
2023 average median listing price: $350,889
2023 average home value: $158,827.48
Price difference: $192,061.52
Milledgeville is bordered by the Oconee River, which is a great perk for its residents. Unfortunately, houses here are listing for about $192,000 more than what they're valued at.
17. Mineral Wells, Texas
2023 average median listing price: $413,644.33
2023 average home value: $220,784.94
Price difference: $192,859.39
Mineral Wells is named for -- you guessed it -- housing quite a few mineral wells. Mineral Wells has just over 14,000 people living in the town, and most residents have a home worth around $220,000, even if the asking price is over $400,000.
16. Uvalde, Texas
2023 average median listing price: $370,400
2023 average home value: $156,746.24
Price difference: $213,653.76
Just west of San Antonio is Uvalde. It's known as one of the best places for gliding in the county, and hosted the 1991 and 2012 World Gliding Championships. Unfortunately, it made national news in 2022 as the site of a tragic school shooting.
15. Heber, Utah
2023 average median listing price: $1,190,111.33
2023 average home value: $973,649.99
Price difference: $216,461.34
Heber is proof that sometimes almost $1.2 million is too much to ask for. Most homes in Heber are worth a little under $1 million. Heber is just southeast of Salt Lake City, Utah's capital and most populous city.
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14. Sevierville, Tennessee
2023 average median listing price: $627,444.33
2023 average home value: $394,858.62
Price difference: $232,585.72
Sevierville is in the foothills of the Great Smoky Mountains, and homes are worth just under $400,000, even if they're listed in the $600,000s. The town of almost 18,000 has hot summers in the 100s, and cold winters that get below 30 degrees. Sevierville is just 15 minutes from the world-famous Dollywood in Pigeon Forge, Tennessee.
13. Fredericksburg, Texas
2023 average median listing price: $767,150.33
2023 average home value: $520,337.46
Price difference: $246,812.87
There are just over 11,000 in this small Texas town. Even still, homes are listed for a quarter of a million dollars. One reason for this might be that it's less than 100 miles from Austin or San Antonio. Even with that proximity, homes are typically worth around $500,000.
12. Breckenridge, Colorado
2023 average median listing price: $1,205,667
2023 average home value: $951,362.86
Price difference: $254,304.14
Breckenridge's high home prices are mostly due to its status as a vacation town, where families have homes to ski during the winter and enjoy Colorado summers. Breckenridge is at the base of the Tenmile Range, and is home to the Breckenridge Ski Resort.
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11. Montrose, Colorado
2023 average median listing price: $700,154.67
2023 average home value: $436,946.15
Price difference: $263,208.51
Montrose is close to many places that people love to visit for various outdoor recreation activities, which might explain why agents would list homes for $700,000. In reality, Montrose homes are worth around $430,000 typically.
10. Hailey, Idaho
2023 average median listing price: $1,122,194.67
2023 average home value: $852,298.21
Price difference: $269,896.45
Though sellers in Hailey are listing for over $1 million, homes in the town are usually worth $270,000 less. Hailey is about two and a half hours from Boise, Idaho's biggest city. It has a population of around 10,000.
9. Kahului, Hawaii
2023 average median listing price: $1,281,055.67
2023 average home value: $977,710.59
Price difference: $303,345.08
Kahului is located in Maui County and offers all the picturesque bliss Hawaii has to offer. Even so, homes are worth under $1 million, despite selling for $300,000 more than that.
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8. Steamboat Springs, Colorado
2023 average median listing price: $1,246,055.67
2023 average home value: $941,788.11
Price difference: $304,267.56
Steamboat Springs is another popular Colorado destination for skiers, plus it offers natural hot springs as an added bonus. Though homes are worth under $1 million, they sell for more than $1.2 million typically.
7. Edwards, Colorado
2023 average median listing price: $1,451,555.67
2023 average home value: $1,146,114.96
Price difference: $305,440.71
Edwards is just 14 miles from Vail, the famed ski resort. It's also four miles from Beaver Creek Resort, another ski resort. Its proximity to the resorts drives the prices up, so homes in Edwards are worth over $1 million, and sell for $1.4 million.
6. Key West, Florida
2023 average median listing price: $1,287,778
2023 average home value: $966,731.66
Price difference: $321,046.34
If you're looking to move to this beach town, you'll likely spend more than $1 million, but if you're a resident there, your home is probably worth less than $1 million. But Key Westers seem to enjoy it, as the area has coral reefs, great restaurants and a happening nightlife.
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5. Bozeman, Montana
2023 average median listing price: $959,611
2023 average home value: $620,961.02
Price difference: $338,649.98
Bozeman has a population of 53,000, making it the fourth-biggest city in the state of Montana. Homes are on sale for close to $1 million, but if you already have a home there, it's likely worth $340,000 less than that.
4. Kapaa, Hawaii
2023 average median listing price: $1,357,110
2023 average home value: $899,121.40
Price difference: $457,988.60
Kapaa is the biggest city on the island of Kauai, but there are only about 10,000 people in the town. To live in Hawaii, on average, you'll typically pay between $800,000-$900,000, so Kapaa's prices are significantly higher at $1.3 million. Though, residents can expect a home value of $450,000 less than that.
3. Jackson, Wyoming
2023 average median listing price: $1,594,055.67
2023 average home value: $1,132,951.19
Price difference: $461,104.48
Jackson is a bit of a hub. It's close to Yellowstone National Park, as well as ski resorts Jackson Hole Mountain, Snow King Mountain and Grand Targhee. Homes are listed for $1.5 million, but home values hover around $1.1 million.
2. Glenwood Springs, Colorado
2023 average median listing price: $1,386,499.67
2023 average home value: $812,942.62
Price difference: $573,557.05
Glenwood Springs boasts an array of natural hot springs, as well as an adventure park so there's fun for the whole family. Strikingly, there's an almost $600,000 difference between how much homes are listed for and their typical worth.
1. Vineyard Haven, Massachusetts
2023 average median listing price: $2,193,222.33
2023 average home value: $1,378,792.93
Price difference: $814,429.41
Vineyard Haven is on the island of Martha's Vineyard, and it will cost you a pretty penny to buy a house there. However, there's an almost $1 million discrepancy between how much homes are listed for and the average home values.
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Methodology: To find what states have the most overpriced home in April, GOBankingRates used (1) the Zillow Home Value index to find the 2023 average home values and (2) the Zillow Median List Price to find the average median home sales. GOBankingRates calculated the differences and kept the 30 largest differences. All data is up-to-date as of April 26, 2023.
This article originally appeared on GOBankingRates.com: Spring Real Estate: These 25 Places Have the Most Overpriced Homes
